Jakarta hotel market to gain momentum as branded supply returns in H2
Returning branded supply could strengthen market momentum, while resilient corporate and local demand may continue favouring upscale and luxury hotels over midscale properties.
Jakarta added no hotel rooms in Q2 2026, but branded supply is scheduled to return in western Jakarta and the CBD during H2.
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The city’s supply remained flat in the first half of the year.
Jakarta's hotel market is poised for a stronger second half of 2026 as branded hotel supply is expected to return, while upscale and luxury properties continue to outperform, according to JLL.
No new hotel rooms were added to the market in Q2, leaving Jakarta's supply flat through the first half of the year. JLL expects a healthier pipeline in H2, with branded hotels scheduled to enter western Jakarta and the central business district.
Through June, upscale and luxury hotels recorded RevPAR gains driven by higher room volumes, while the midscale segment saw RevPAR decline as average daily rates fell despite stable occupancy, JLL said.
Investment activity remained muted. The sale of Waldorf Astoria Jakarta was the only recorded hotel transaction in the city during H1 2026, according to JLL, highlighting growing interest from Middle Eastern capital in Southeast Asian luxury hospitality assets.
JLL expects upscale and higher-tier hotels to remain resilient, supported by robust corporate and local demand despite continued weakness in meetings, incentives, conferences and exhibitions activity. The segment is positioned for further upside as MICE demand gradually recovers.
The longer-term tourism outlook is also being supported by government-backed infrastructure and investment initiatives. JLL highlighted Indonesia's 2025-2029 National Medium Term Development Plan, which targets significant tourism growth through luxury hotel development, modern convention facilities and 10 special economic zones.
According to JLL, these initiatives are intended to unlock new investment opportunities and encourage business activity, potentially strengthening Jakarta's position as tourism and corporate demand continue to expand.